Maybe this has been answered but I couldn't find it. I'm a wholesaler and I have access to a foreclosures that are now owned by the bank. My question is can you wholesale them and if so, can someone please explain how?
@Everett Marshall , the answer is pretty similar to your recent inquiry about wholesaling HUD homes.
First off, the bank probably won't give you the time of day if they haven't already decided to list the house, so you would have to wait for it show up on the MLS and make an offer. Because of deed restrictions, you probably would need to get in under contract in the name of an LLC and then transfer the LLC to the end buyer before closing
That being said, I highly encourage you to look elsewhere for your wholesaling business. Like I said, you probably won't get anywhere with a bank until they have decided to list the property, and once that has happened, every investor in town will have seen it listed themselves so you aren't really bringing value to the transaction.
The value a wholesaler brings is finding unknown, off-market deals at great prices, not finding listed deals that are easy for everyone to find.
Everett Marshall, For wholesaling, I think you will find this thread helpful:
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From what I know is you can't do an easy wholesale on foreclosure/HUD homes because you cannot assign the contract (at least in Texas). You will have to close on the property and then resell it to the new owner. Of course this can be done within hours of each other but that is another dose of closing costs.
Banked owned properties - there are deals out there. But they need to have been sitting for a WHILE. Do not even bother with one that just hit the bank owned list.
The only ones I've seen any investors have a chance with are the ones that have been sitting for a long time or the random time you find a house and it's the end of a financial quarter at the bank and the bank sees it as a chance to get one off the books for that quarter.
Hope that helps a bit...
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